3,257
edits
Changes
→Rise of Taxes
==Rise of Taxes==
The two developments of empires and currency by the mid-1st millennium BCE led to complex tax systems that began to resemble our own systems today. The Achaemenid Empire created a regulated system that was based on earlier systems, such as the Assyrian Empire, but the system began to change as currency began to be more utilised in the Greek-speaking parts of the Empire and the Greek world itself. Provinces now had specific obligations and those obligations had to be met through silver. There were attempts then to standardize revenue collected by the state into a type of currency (e.g., silver) rather than as a variety of products. This also meant that the state now had to understand the land it controlled in more detail, as the types of crops, fruit trees, and other forms of revenue generation had to be identified so that an estimate on tax obligations could be calculated (and thus a budget determined by the state).
The development of coinage allowed the state to obtain funds in new ways. It now created a system where people had to exchange goods or their own currency to obtain local coins. The state now could create favorable exchange rates as a form of revenue generation. Coins, in effect, allowed taxes to be hidden and allowed the authority of the state to be made clear. This caught on in the Aegean and Anatolian cities at first but later began to spread throughout the Mediterranean and Middle East.
==Later Development==